Unfortunately I was sick the past few weeks and I am just now getting back into the swing of things. Similar to the demand pull that the warmer than usual spring has had on macroeconomic data, the warmer spring caused me to have an earlier than usual sinus infection as well as some horrific allergies.

For the first time since the last week of December of 2011, the S&P 500 Index closed lower on the weekly chart. Recently I have been discussing the overbought nature of stocks based on a variety of indicators. However, the real question that should be asked is whether last week was just a short term event or if we see sustained selling in coming weeks.

The U.S. Dollar Index is once again trading lower this morning. The U.S. Dollar Index is a basket of six other leading currencies verse the U.S. Dollar. Most commodities are traded in U.S. Dollars and this makes the dollar the worlds reserve currency. In June 2010, the U.S. Dollar Index was trading around $88.70, today the dollar is trading at $76.66.

U.S. stock index futures traded sideways to lower on Wednesday after confirming Tuesday’s closing price reversal tops. The topping pattern that may be developing usually leads to a minimum 2 to 3 day break equal to 50% of the last rally.